It WAS funny. Regarding myth 1, actually the minority controls. This fat cat comes to a point where he wants to get into the market. He builds a WALL with a limit order. The retail traders and other fat cats bounce off the wall leaving him standing there with his limit order not filled. Look at him still on the book and the market moving away from him. Funny. regarding myth #2. adding and pulling limit orders before they are filled NEVER shows on the charts. Only T&S shows on charts. Adding and pulling are each much more active than the T&S levels of stocks or contracts going through the T&S. What kind of orders never show on the book? Market orders. Market orders only show on charts and never show on the book. for MS's Myth #2, he leaves out that the market orders never show on the book, adding and pulling always show but he does not mention or know the three games that using these tools represent. Too bad for myth #2. very funny. Myth # 3 deals with MS's belief that price forms on the book. We all know that trends do not end on bar ends. The price of the turn is well known before the turn. MS does not tell where on the book this shows. Lets say he is keeping a secret. good for MS and his secrets. BUT it is also true that turns are carved using charts because the turn shows BEFORE the turn and the expert, knowing this, uses what shows on the chart to later carve the turn. All this expert uses is a list of pairs. The first of the pair occurs and he waits and looks for the second of the pair to carve the turn. When the second gets closer and closer he looks at the book to see the value of the exteme of the turn. The chart tells the expert when to look for a value on the book that is the extreme trun value. The value where unfilled limit orders outnumber filled limit orders. This value is where the fat cats get hung out to dry. Why? Their orders are too far down in the FIFO to stand a chance to get filled. they are the unfilled orders and the market goes away leaving them standing there. Everyone knows the ways of the book and its games. Everyone knows that there are more adds and pulls than there are trades that only show on the chart. Hey we all know that the minority controls the market. Look at the daily range. Divide it into the annual fat cat earnings. Is the answer more or less than 1. That was a very funny post. does everyone know the book only shows one thing: unfilled limit orders. So MS spends his time looking at unfilled market orders.
Where do you suggest a trader learn real edge? Let me guess, a TA book, starring at charts for years, or maybe an ET guru? LMFAO! surf
Trial error experience experiment experience. In your fantasy world you can kidnap anyone passing by on the street drop them at a prop shop for the day and booom! They have the company egde! Booom! Their an established trader....
Yep and this type of trial by fire is quite a filter. Only the best (or the ones with the deepest pockets and/or a lot of time to commit) have a chance to develop a working method.
The profits of the skilled traders come from those who gamble. Edges are dynamic, they come and go. A few edges will die next month but a few new ones will show up and last for enough time to make those that know them rich. Finding an edge is not easy. I consider as an edge any system that can make profits above risk free return for at least two years. If and when I see the system performance deviating from its historical backtested and real performance I put it in standby mode and if the performance gets worse I hit the Delete key and look for a new edge to replace it. There is no better proof than the one posted in this blog that edges exist. But you do not find just one and relax. You must try every day because you never know when they come and go.
You don't even have a clue what real edge is. At my old prop firm, the number one trader was a 22 year old female teacher who had zero experience in the markets. She did incredibly well because she followed directions exactly and the software ( the edge) did the rest. The level of ignorance posing as arrogance is astounding on this board. No wonder most of you consistently lose. Edge has nothing to do with hardwork, experience , experiment -- it's teachable and successful prop firms will teach you. If you can get hired. As an example--- take don brights opening order strategy of long ago. Retail simply doesn't have the capital or software to make this edge work. I know I'm talking about the past. And this edge doesn't work as well any longer, if at all--- but certainly they are on to something new that does work. However, dark pool access, routing edges, and a host of other edges are used by today's prop trader that you can't touch as retail. surf
LOL. You will waste your money developing your own edge when successful prop firms will provide you a real edge? Why not just do surgery on yourself rather than visit a skilled surgeon? surf
A surgeon's skill can be taught to many and it won't really dilute its value much as one surgeon cannot perform surgeries everywhere at once. Exactly the opposite with trading, an edge used by many will instantly lose its value. Do you seriously think prop firms would teach random guys walking in from the street their edges, assuming they have any? They could just walk off with the knowledge and the edge would go *poof* within days. Considering all your years in the industry, you seem awfully unaware of the market basics.
I know for a fact prop firms teach real edge. I'm talking about real prop firms that profit when you profit and not churn/ burn shops. Structural edge such as routing, dark pool access, etc and the tactics that go along with real edge is generally not portable back into retail. It may eventually filter down but by that time the prop firm is another 3 steps ahead.
What's the purpose to teach someone for free and pay him/her if nearly every real edge can be automated as you stated a few times?